REVENUE

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

REVENUE

REVENUE

PERFORMANCE OBLIGATIONS

We recognize revenue when control of promised goods or services (“performance obligations”) is transferred to customers, in an amount that reflects the consideration expected in exchange for those goods or services (“transaction price”). Unsatisfied performance obligations as of June 30, 2023 are primarily due to advances on stumpage contracts, unearned license revenue, unearned carbon capture and storage revenue and post-closing obligations on real estate sales. Of these performance obligations, $33.5 million is expected to be recognized within the next twelve months, with the remaining $11.3 million expected to be recognized thereafter as we satisfy our performance obligations. We generally collect payment within a year of satisfying performance obligations and therefore have elected not to adjust revenues for a financing component.

CONTRACT BALANCES

The timing of revenue recognition, invoicing and cash collections results in trade receivables and deferred revenue (contract liabilities) on the Consolidated Balance Sheets. Trade receivables are recorded when we have an unconditional right to consideration for completed performance under the contract. Contract liabilities relate to payments received in advance of performance under the contract. Contract liabilities are recognized as revenue as (or when) we perform under the contract.

The following table contains contract balances recorded in the Consolidated Balance Sheets at June 30, 2023 and December 31, 2022:

	June 30, 2023	December 31, 2022	Balance Sheet Location
Contract assets
Trade receivables, net (a)	$31,515	$27,837	Trade receivables
Contract liabilities
Deferred revenue, current (b)	33,490	22,762	Deferred revenue
Deferred revenue, non-current (c)	11,327	6,895	Long-term deferred revenue

(a)The increase in trade receivables was primarily driven by timing of sales in our timber segments.

(b)The increase in deferred revenue, current is driven by the timing of renewals of hunting contracts and the current portion of a carbon capture and storage contract entered into in the first quarter of 2023, partially offset by the satisfaction of post-closing obligations on real estate sales and stumpage contracts.

(c)The increase in deferred revenue, non-current is primarily driven by a carbon capture and storage contract entered into in the first quarter of 2023.

The following table summarizes revenue recognized during the three and six months ended June 30, 2023 and 2022 that was included in the contract liability balance at the beginning of each year:

	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Revenue recognized from contract liability balance at the beginning of the year (a)	$6,335	$4,968	$17,735	$12,501

(a)    Revenue recognized was primarily from hunting licenses, the use of advances on pay-as-cut timber sales and the satisfaction of post closing obligations on real estate sales.

The following tables present our revenue from contracts with customers disaggregated by product type for the three and six months ended June 30, 2023 and 2022:

Three Months Ended	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Real Estate	Trading	Elim.	Total
June 30, 2023
Pulpwood	$23,855	$2,204	$8,364	—	$1,442	—	$35,865
Sawtimber	33,846	27,781	51,829	—	13,510	—	126,966
Hardwood	706	—	—	—	—	—	706
Total Timber Sales	58,407	29,985	60,193	—	14,952	—	163,537
License Revenue, Primarily from Hunting	5,186	203	68	—	—	—	5,457
Other Non-Timber/Carbon Revenue	4,717	2,129	637	—	—	—	7,483
Agency Fee Income	—	—	—	—	347	—	347
Total Non-Timber Sales	9,903	2,332	705	—	347	—	13,287
Improved Development	—	—	—	12,233	—	—	12,233
Rural	—	—	—	15,626	—	—	15,626
Timberland & Non-Strategic	—	—	—	255	—	—	255
Deferred Revenue/Other (a)	—	—	—	3,568	—	—	3,568
Total Real Estate Sales	—	—	—	31,682	—	—	31,682
Revenue from Contracts with Customers	68,310	32,317	60,898	31,682	15,299	—	208,506
Lease Revenue	—	—	—	359	—	—	359
Intersegment	—	—	—	—	116	(116)	—
Total Revenue	$68,310	$32,317	$60,898	$32,041	$15,415	($116)	$208,865
Three Months Ended	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Real Estate	Trading	Elim.	Total
June 30, 2022
Pulpwood	$30,770	$3,572	$10,851	—	$2,999	—	$48,192
Sawtimber	21,744	34,310	64,247	—	24,319	—	144,620
Hardwood	5,706	—	—	—	—	—	5,706
Total Timber Sales	58,220	37,882	75,098	—	27,318	—	198,518
License Revenue, Primarily from Hunting	6,506	129	87	—	—	—	6,722
Other Non-Timber/Carbon Revenue	1,545	1,146	3,697	—	—	—	6,388
Agency Fee Income	—	—	—	—	316	—	316
Total Non-Timber Sales	8,051	1,275	3,784	—	316	—	13,426
Improved Development	—	—	—	11,566	—	—	11,566
Rural	—	—	—	23,420	—	—	23,420
Deferred Revenue/Other (a)	—	—	—	(907)	—	—	(907)
Total Real Estate Sales	—	—	—	34,079	—	—	34,079
Revenue from Contracts with Customers	66,271	39,157	78,882	34,079	27,634	—	246,023
Lease Revenue	—	—	—	323	—	—	323
Intersegment	—	—	—	—	49	(49)	—
Total Revenue	$66,271	$39,157	$78,882	$34,402	$27,683	($49)	$246,346

(a)    Includes deferred revenue adjustments, revenue true-ups and marketing fees related to Improved Development sales.

Six Months Ended	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Real Estate	Trading	Elim.	Total
June 30, 2023
Pulpwood	$50,638	$5,919	$14,446	—	$2,881	—	$73,884
Sawtimber	68,389	57,562	89,512	—	24,176	—	239,639
Hardwood	1,826	—	—	—	—	—	1,826
Total Timber Sales	120,853	63,481	103,958	—	27,057	—	315,349
License Revenue, Primarily From Hunting	10,454	340	123	—	—	—	10,917
Other Non-Timber/Carbon Revenue	8,845	2,915	923	—	—	—	12,683
Agency Fee Income	—	—	—	—	681	—	681
Total Non-Timber Sales	19,299	3,255	1,046	—	681	—	24,281
Improved Development	—	—	—	17,035	—	—	17,035
Rural	—	—	—	22,125	—	—	22,125
Timberland & Non-Strategic	—	—	—	1,892	—	—	1,892
Deferred Revenue/Other (a)	—	—	—	6,661	—	—	6,661
Total Real Estate Sales	—	—	—	47,713	—	—	47,713
Revenue from Contracts with Customers	140,152	66,736	105,004	47,713	27,738	—	387,343
Lease Revenue	—	—	—	604	—	—	604
Intersegment	—	—	—	—	246	(246)	—
Total Revenue	$140,152	$66,736	$105,004	$48,317	$27,984	($246)	$387,947
Six Months Ended	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Real Estate	Trading	Elim.	Total
June 30, 2022
Pulpwood	$68,381	$6,491	$18,446	—	$4,523	—	$97,841
Sawtimber	49,260	76,524	106,347	—	35,857	—	267,988
Hardwood	11,555	—	—	—	—	—	11,555
Total Timber Sales	129,196	83,015	124,793	—	40,380	—	377,384
License Revenue, Primarily from Hunting	11,182	245	148	—	—	—	11,575
Other Non-Timber/Carbon Revenue	2,657	2,177	5,330	—	—	—	10,164
Agency Fee Income	—	—	—	—	667	—	667
Total Non-Timber Sales	13,839	2,422	5,478	—	667	—	22,406
Improved Development	—	—	—	16,532	—	—	16,532
Rural	—	—	—	40,369	—	—	40,369
Timberland & Non-Strategic	—	—	—	11,400	—	—	11,400
Deferred Revenue/Other (a)	—	—	—	(271)	—	—	(271)
Total Real Estate Sales	—	—	—	68,030	—	—	68,030
Revenue from Contracts with Customers	143,035	85,437	130,271	68,030	41,047	—	467,820
Lease Revenue	—	—	—	567	—	—	567
Intersegment	—	—	—	—	98	(98)	—
Total Revenue	$143,035	$85,437	$130,271	$68,597	$41,145	($98)	$468,387

(a)    Includes deferred revenue adjustments, revenue true-ups and marketing fees related to Improved Development sales.

The following tables present our timber sales disaggregated by contract type for the three and six months ended June 30, 2023 and 2022:

Three Months Ended	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Trading	Total
June 30, 2023
Stumpage Pay-as-Cut	$30,493	—	—	—	$30,493
Stumpage Lump Sum	281	—	—	—	281
Total Stumpage	30,774	—	—	—	30,774
Delivered Wood (Domestic)	25,437	26,996	12,559	89	65,081
Delivered Wood (Export)	2,196	2,989	47,634	14,863	67,682
Total Delivered	27,633	29,985	60,193	14,952	132,763
Total Timber Sales	$58,407	$29,985	$60,193	$14,952	$163,537
June 30, 2022
Stumpage Pay-as-Cut	$21,326	—	—	—	$21,326
Stumpage Lump Sum	90	85	—	—	175
Total Stumpage	21,416	85	—	—	21,501
Delivered Wood (Domestic)	33,248	33,956	18,051	1,104	86,359
Delivered Wood (Export)	3,556	3,841	57,047	26,214	90,658
Total Delivered	36,804	37,797	75,098	27,318	177,017
Total Timber Sales	$58,220	$37,882	$75,098	$27,318	$198,518

Six Months Ended	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Trading	Total
June 30, 2023
Stumpage Pay-as-Cut	$60,970	—	—	—	$60,970
Stumpage Lump Sum	387	624	—	—	1,011
Total Stumpage	61,357	624	—	—	61,981
Delivered Wood (Domestic)	54,850	56,164	24,154	491	135,659
Delivered Wood (Export)	4,646	6,693	79,804	26,566	117,709
Total Delivered	59,496	62,857	103,958	27,057	253,368
Total Timber Sales	$120,853	$63,481	$103,958	$27,057	$315,349
June 30, 2022
Stumpage Pay-as-Cut	$57,532	—	—	—	$57,532
Stumpage Lump Sum	90	5,473	—	—	5,563
Total Stumpage	57,622	5,473	—	—	63,095
Delivered Wood (Domestic)	65,376	73,402	31,532	1,729	172,039
Delivered Wood (Export)	6,198	4,140	93,261	38,651	142,250
Total Delivered	71,574	77,542	124,793	40,380	314,289
Total Timber Sales	$129,196	$83,015	$124,793	$40,380	$377,384